15-16

If a governmental unit has decided to acquire assets and has restricted resources to acquire these assets, what must the unit do? a. create a debt service fund b. create a capital projects fund c. disclose only in the notes section of the financial reports d. nothina until there Is actually an expenditure Employees for your city earned $3.6 million in vacation pay that they did not use in the current year. Your city estimates that of this amount $2.8 million will be paid next year and the $.6 million will be paid in subsequent years and that the balance of $.2 million will never be paid. Assume that the city records this in their general fund. What is the amount that you will report in the general fund for this year? a. $0 b. $3.4 million c. $3.6 milion d. $.2 milition e. $.6 miltion f. $3.0 milion g. $2.8 million